Chevron's Angola LNG Makes First Shipment with an Eye on Asia

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Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--The first shipment of liquefied natural gas (LNG) from Chevron's (NYSE:CVX) (San Ramon, California) new, $10 billion Angolan LNG plant and terminal has been sent to Angola's state-owned energy utility Sonangol E.P. The shipment follows a long buildup and delays caused by skilled labor problems, fires at the plant, and a squeeze on demand due to the U.S. shale gas boom.

The facility is sited in Soyo, Angola. Sonangol (Luanda) is shipping the LNG to Brazil, and is in negotiations for a spate of deals. The plant will ship LNG in June and July before an all-systems check is performed. Production will resume in the fourth quarter of 2013.

"The first gas at Angola LNG is an important milestone in our strategic plan to grow our production," said George Kirklan, vice chairman of Chevron. "This project will commercialize natural gas resources in western Africa to meet growing demand in the region and internationally."

John Watson, Chevron's chairman and CEO, told analysts in March this year that he expected demand for LNG to grow 15 million tons annually through 2025. Asian nations will account for the bulk of the growth, which perfectly positions Angola to take advantage of the booming demand.

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